Mortgage rates may soon arise due to economy

Mortgage rates may rise because of the recent economic turbulence.A report from The Wall Street Journal explained that, due to the recent economic turmoil, the country's low interest rates for mortgages may soon rise.Freddie Mac's most recent Primary Mortgage Market survey showed the interest rate for 30-year fixed loans was 4.32 percent, which is the lowest it has been all year. However, with the deficit debates causing a stir, in addition to Standard & Poor's downgrading the nation's credit rating from AAA to AA+, many experts believe the country's financial status may be in flux.The report suggested Treasury yields will eventually rise, which will cause interest rates on consumer loans to follow suit. While this hasn't happened yet, the news source believes an upward trend may be on the horizon.The WSJ explains credit card rates are based upon prime rates, which are influenced by the Fed rate and an additional rate set by the card lenders. The article states many credit card companies may see the turmoil as a chance to raise their rates.Furthermore, while interest rates for fixed-rate loans are based upon Treasury yields, a number of other factors may drive them up. This includes S&P's recent downgrading of Freddie Mac and Fannie Mae.In Houston, properties have become considerably affordable, which, in addition to low interest rates for loans, has piqued the interest of more buyers. However, if rates increase, this interest may dissipate.Courtesy of 2M Realty News

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